What is the value of a bond?

Bond values are very sensitive to market interest rates. For example, if you purchased bond with a stated/coupon rate of 10% and market rates had declined to 8% since you purchased the bond, then the value of your 10% bond in a market crediting 8% would be higher. Use this calculator to help determine the value of a bond.

Bond Input and Assumptions

Face amount on bond ?

The amount the bondholder is paid at maturity, also called par or face value.

Number of years to maturity ?

How many years remain until the bond matures and the face amount is repaid.

Coupon rate ?

The fixed annual interest rate the bond pays, calculated on its face amount.

Today's market rate ?

The interest rate currently available on comparable bonds, used to price this bond against the market.

Table of Historic Rates of Return. Inflation 2.9%, U.S. Treasury Bills 3.3%, Long-term Government Bonds 5.0%, U.S. Large-Company Stocks 10.4%, and U.S. Small-Company Stocks 11.8%. Past performance is no guarantee of future results. Source: Ibbotson SBBI 1926-2024

Desired yield to maturity ?

The annual return you'd want to earn if you held the bond until it matures.

Enter your values and select Calculate.

The market price and yield price show what a bond is worth today under two different assumptions: one uses today's prevailing market rate, the other uses a yield you specify. If either figure sits above the face amount, the bond is trading at a premium; below face, it's at a discount. Neither number is "correct" on its own — they're answers to different questions about what rate of return matters to you.

The coupon rate and the rate you discount at (market rate or desired yield) do the most to move these prices. A coupon rate above the discount rate pushes the price above face value; below it, the price falls under face value. The years to maturity amplifies that effect — a longer-dated bond swings more for the same rate difference.

This calculator doesn't account for taxes on coupon income, brokerage fees, credit or default risk, or the chance that market rates move again before you sell or the bond matures. It also assumes coupons are paid and reinvested exactly as scheduled, which real markets don't always cooperate with.

If you're comparing this bond against another, run both through the same market rate and desired yield so the comparison is fair. It's worth revisiting this whenever market rates shift meaningfully, or before you decide to buy, hold, or sell. Having a clear price to reference, even a rough one, puts you ahead of guessing.

This information may help you analyze your financial needs. It is based on information and assumptions provided by you regarding your goals, expectations and financial situation. The calculations do not infer that the company assumes any fiduciary duties. The calculations provided should not be construed as financial, legal or tax advice. In addition, such information should not be relied upon as the only source of information. This information is supplied from sources we believe to be reliable but we cannot guarantee its accuracy. Hypothetical illustrations may provide historical or current performance information. Past performance does not guarantee nor indicate future results.